Malaysia-Japan Trade Projected to Soar This Year – Tengku Zafrul
TOKYO: Trade between Malaysia and Japan is expected to surge this year, driven by investments, particularly in the semiconductor and renewable energy sectors, said Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Abdul Aziz. Japan has been Malaysia’s fourth-largest trading partner for nine consecutive years.
“Trade with Japan last year amounted to approximately RM35 billion, with one-third of this trade involving liquefied natural gas (LNG),” he told Malaysian reporters here.
He stated that Malaysia has been providing a secure energy supply for Japan and is now focusing on renewable energy. During Prime Minister Datuk Seri Anwar Ibrahim’s working visit to Japan from May 22 to 24, 2024, Malaysia secured potential investments worth RM1.45 billion and potential exports valued at RM550 million from meetings with Japanese companies.
The meetings involved six companies already operating in Malaysia and one company exploring investment opportunities in the country. Tengku Zafrul said the company planning to invest in Malaysia is from the semiconductor industry, and its name will be announced later, pending necessary approvals. Other companies expressed their commitment to new investments in Malaysia, particularly in new and renewable energy, with interest in Sabah and Sarawak.
“Investment in renewable energy is expected to reach RM40 billion to RM50 billion over the next ten years. Many companies producing electrical and electronic products, especially in the semiconductor industry, want green energy supplies and see potential in Sarawak,” he said.
He mentioned that the government has received tax incentive requests from Japanese companies and will conduct a cost-benefit analysis before deciding on any incentives for the sector. “This involves new sectors, so they need support in terms of subsidies and tax incentives. The government will conduct a cost-benefit analysis before deciding on any incentives for this sector,” he said.
As of 2023, a total of 2,810 manufacturing projects with Japanese participation have been implemented, with total investments amounting to RM102.11 billion (USD 29.67 billion), creating 344,120 job opportunities.
